Doe's $73M Mound Site OU-1 Remediation Contract Awarded to Accelerated Remediation Company a Portage Shaw Joint Venture LLC

Contract Overview

Contract Amount: $72,983,358 ($73.0M)

Contractor: Accelerated Remediation Company a Portage Shaw Joint Venture LLC

Awarding Agency: Department of Energy

Start Date: 2006-10-12

End Date: 2010-09-30

Contract Duration: 1,449 days

Daily Burn Rate: $50.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REMEDIATION OF OPERABLE UNIT 1 (OU-1) OF MOUND SITE.

Place of Performance

Location: MIAMISBURG, MONTGOMERY County, OHIO, 45343

State: Ohio Government Spending

Plain-Language Summary

Department of Energy obligated $73.0 million to ACCELERATED REMEDIATION COMPANY A PORTAGE SHAW JOINT VENTURE LLC for work described as: REMEDIATION OF OPERABLE UNIT 1 (OU-1) OF MOUND SITE. Key points: 1. The contract's value of $73 million for remediation services appears substantial, necessitating a close examination of its cost-effectiveness. 2. Competition dynamics for this delivery order are noted as competitive, suggesting potential for price discovery, though the specific number of bidders is not detailed. 3. Risk indicators are not explicitly detailed in the provided data, but the nature of environmental remediation often carries inherent risks. 4. Performance context is limited to the duration of the contract (1449 days), with no specific performance metrics or outcomes available. 5. This contract falls within the environmental remediation sector, a critical area for government agencies managing legacy sites. 6. The contract type, Cost Plus Fixed Fee, can incentivize cost control but requires careful oversight to prevent scope creep or excessive overhead.

Value Assessment

Rating: fair

Benchmarking the $73 million cost for the remediation of Operable Unit 1 at the Mound Site is challenging without more specific details on the scope of work and the environmental conditions. However, given the duration of nearly four years, the average annual cost would be approximately $18.2 million. This figure needs to be compared against similar large-scale environmental remediation projects undertaken by the Department of Energy or other federal agencies to assess if it represents a reasonable investment for the services rendered. The Cost Plus Fixed Fee (CPFF) contract type means that while the fee is fixed, the costs can fluctuate, making direct price comparisons difficult without detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed under a broader contract vehicle. The data specifies 'NO' (number of offers) as 6, suggesting a healthy level of competition among potential bidders. A competitive process with multiple bidders generally allows for a more robust price discovery mechanism and can lead to more favorable pricing for the government. The presence of six offers indicates that several firms were interested and capable of performing the required remediation services.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario. The government was able to leverage market forces to secure the best value for the remediation work.

Public Impact

The primary beneficiaries are the Department of Energy and potentially the surrounding communities, through the cleanup of a contaminated site. The services delivered involve the remediation of Operable Unit 1 (OU-1) of the Mound Site, addressing environmental contamination. The geographic impact is localized to the Mound Site in Ohio. Workforce implications would include employment opportunities for environmental scientists, engineers, technicians, and construction labor involved in the remediation process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The environmental remediation sector is a significant part of the broader environmental services industry, driven by regulatory requirements and the need to address historical contamination at industrial and government sites. Federal agencies, particularly the Department of Defense and Department of Energy, are major clients in this sector due to the legacy of past operations. Spending in this area is often substantial, reflecting the complexity and long-term nature of cleanup activities. Comparable spending benchmarks would typically involve analyzing the cost per unit of contaminant removed, cost per acre remediated, or cost per cubic yard of material treated for similar projects.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, large federal remediation contracts can offer subcontracting opportunities for specialized small businesses, but this depends on the prime contractor's strategy and the specific terms of the award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Energy's contracting and program management offices. Given the nature of environmental remediation, specific environmental compliance and safety oversight would also be critical. Transparency would depend on the DOE's public reporting practices regarding contract performance and environmental outcomes. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Risk Flags

Tags

environmental-remediation, department-of-energy, mound-site, competitive-delivery-order, large-contract, cost-plus-fixed-fee, ohio, remediation-services, federal-facility-cleanup

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $73.0 million to ACCELERATED REMEDIATION COMPANY A PORTAGE SHAW JOINT VENTURE LLC. REMEDIATION OF OPERABLE UNIT 1 (OU-1) OF MOUND SITE.

Who is the contractor on this award?

The obligated recipient is ACCELERATED REMEDIATION COMPANY A PORTAGE SHAW JOINT VENTURE LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $73.0 million.

What is the period of performance?

Start: 2006-10-12. End: 2010-09-30.

What specific remediation technologies were employed under this contract, and how did their selection impact the overall cost and effectiveness?

The provided data does not specify the remediation technologies used for Operable Unit 1 (OU-1) at the Mound Site. The effectiveness and cost of environmental remediation are heavily dependent on the chosen technologies, which are selected based on the type of contaminants, site geology, and regulatory requirements. For instance, in-situ treatments might be less disruptive and costly than ex-situ methods requiring excavation and disposal. Without details on the technologies, it's impossible to assess their impact on the $73 million contract value or the project's success in meeting cleanup goals. Further investigation into the contract's technical specifications and performance reports would be necessary to answer this question.

How does the $73 million cost compare to the total estimated cost for the complete remediation of the Mound Site?

The $73 million awarded for the remediation of Operable Unit 1 (OU-1) represents a significant investment, but its context within the total estimated cost for the entire Mound Site remediation is not provided. Federal agencies like the Department of Energy often manage multi-phase cleanup projects at large sites, with total remediation costs potentially running into hundreds of millions or even billions of dollars. OU-1 is just one operable unit, and other areas may require different or more extensive cleanup efforts. To understand the proportion this contract represents, one would need access to the DOE's overall site remediation plan, budget allocations, and total cost estimates for all operable units at the Mound Site.

What were the key performance indicators (KPIs) for this contract, and did the contractor meet them?

The provided data does not include specific Key Performance Indicators (KPIs) for the "REMEDIATION OF OPERABLE UNIT 1 (OU-1) OF MOUND SITE" contract. For environmental remediation contracts, KPIs typically focus on factors such as the volume of contaminated material treated, contaminant concentration reduction levels achieved, adherence to project schedules, safety incident rates, and compliance with environmental regulations. Without access to the contract's statement of work, performance work statement, or any post-award performance reviews, it is not possible to determine if ACCELERATED REMEDIATION COMPANY A PORTAGE SHAW JOINT VENTURE LLC met its contractual obligations or the effectiveness of the remediation efforts.

What is the historical spending trend for environmental remediation at the Mound Site prior to and following this contract?

The provided data focuses solely on a single delivery order valued at $73 million awarded in October 2006 for OU-1 remediation, with an end date in September 2010. It does not offer historical spending trends for the Mound Site or for environmental remediation activities in general. To analyze historical spending, one would need to examine the Department of Energy's budget appropriations and contract awards related to the Mound Site over a longer period, potentially spanning decades, to identify patterns, fluctuations, and the total investment in cleanup efforts across all operable units and phases.

Were there any significant cost overruns or underruns on this contract, and what were the contributing factors?

The data provided does not contain information regarding cost overruns or underruns for this specific contract. As a Cost Plus Fixed Fee (CPFF) contract, the government pays the allowable costs incurred by the contractor plus a predetermined fixed fee. While the fee is fixed, the total cost can vary. Significant deviations from the estimated cost could arise from unforeseen site conditions, changes in regulatory requirements, contractor inefficiencies, or scope adjustments. Without access to the final contract cost, contractor financial reports, or government audit findings, it is impossible to determine if there were cost variances and the reasons behind them.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesRemediation and Other Waste Management ServicesRemediation Services

Product/Service Code: SALVAGE SERVICESDEMOLITION OF NONBUILDING FACILITY

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DE-RT30-06CC00009

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 207 LOS ALAMOS HWY, ESPANOLA, NM, 87532

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $72,983,358

Exercised Options: $72,983,358

Current Obligation: $72,983,358

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DEAM0905SR22399

IDV Type: IDC

Timeline

Start Date: 2006-10-12

Current End Date: 2010-09-30

Potential End Date: 2010-09-30 00:00:00

Last Modified: 2019-09-23

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